Chapter 15stephanielarkin.com/marketing/Ch15.pdf · Chapter 15: Integrated Marketing Communications Pride/Ferrell ... After Reviewing This Chapter You Should: • Be able to describe

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Chapter 15:Integrated Marketing Communications

Pride/FerrellFoundations of MarketingFourth Edition

Prepared by Milton PressleyUniversity of New Orleans

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Objectives1. Discuss the nature of integrated marketing

communications.2. Describe the process of communication.3. Understand the role of promotion in the

marketing mix.4. Explain the objectives of promotion.5. Understand the major elements of the

promotion mix.

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Objectives6. Describe the factors that affect the choice of

promotion-mix elements.7. Explore word-of-mouth communication and

how it affects promotion.8. Understand the criticisms and defenses of

promotion.

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Integrated Marketing Communications (IMC)

• Coordination of promotional efforts for maximum informational and persuasive impact on customers.

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The Communication Process• Communication - A sharing of meaning• Source - A person, group or organization that decodes a

coded message• Receiver - The individual, group or organization that decodes a

coded message• Coding process (Coding process ) - Converting meaning into a series of signs or

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Decoding the Message• Communication channel - The medium of transmission that carries the coded message

from the source to the receiver or audience• Decoding process - Converting signs or symbols into concepts and ideas

• Noise - Anything that reduces a communication’s clarity and accuracy

• Feedback - The receiver’s response to a message

• Channel capacity - The limit on the volume of information a communication

channel can handle effectively

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The Communication Process

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Changing Sources of News and Information

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Promotion• Communication to build and maintain

relationships by informing and persuading one or more audiences

Objectives for Promotion

Marketers use advertising and

other methods to achieve a variety of

objectives.

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Eight Promotional Objectives

ReduceSales

Fluctuations

CombatCompetitivePromotional

Efforts

FacilitateResellerSupport Retain

LoyalCustomers

IdentifyProspects

EncourageProduct

Trial

Stimulate Demand

Create Awareness

Promotion

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Information Flows are Important in

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Create Awareness• Making customers

aware of the product is crucial to initiating the product adoption process

Selective Demand

Gap, Inc. uses ads like this one to build selective demand for

its Piperlime products, only available online.

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Stimulate Demand

• Primary demand - Demand for a product category rather than for a

specific brand• Pioneer promotion - Promotion that informs consumers about a new

product• Selective demand - Demand for a specific brand

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Encourage Product Trial• Designed to move

customers through the product adoption process

Techniques used: - Free samples - Coupons - Test drives/limited free-use - Contests - Games Encouraging Product Trial

Papa John’s uses this special promotional offer to stimulate

product trial.

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Promotion • Identify prospects - Identifying customers who are interested in the firm’s product and

most likely to buy it• Retain loyal customers - Maintaining long-term relationships is a major goal of most marketers

• Facilitate reseller support - Providing support to maintain sound working relationships

• Combat competitive promotional efforts - Using promotion to offset or lessen the effect of a competitor’s goals

• Reduce sales fluctuations - Generating sales during slow periods

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Discussion Question• Click on the Television below and watch the

commercial. Of the objectives of promotion just covered, which do you think this advertisement is attempting to achieve?

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The Four Possible Elements of a When an organization combines specific methods to manage the

integrated marketing communications for a particular product, that combination constitutes the promotion mix for that product.

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Advertising• A paid nonpersonal

communication about an organization and its products transmitted to a target audience through mass media

Advertising Aimed at Prevention

This ad focuses on one of the many health risks associated

with secondhand smoke.

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Personal Selling• A paid personal communication that seeks to

inform customers and persuade them to purchase products in an exchange situation

- Kinesic communication: Communicating through the movement of head, eyes, arms, hands, legs or torso

- Proxemic communications: Communicating by varying the physical distance in personal selling situations

- Tactile communications: Communicating through touching

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Public Relations• A broad set of communication efforts used

to create and maintain favorable relationships between an organization and its stakeholders

- Public relations tools include: Annual reports Brochures Event sponsorship Sponsorship of socially responsible programs

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Sales Promotion• Activity or material that

acts as a direct inducement, offering added value or incentive for the product to reseller, salespeople or consumers

Sales Promotion

The coupon in this advertisement is a sales

promotion technique.

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• Visit the Coca Cola Web Site by clicking on the @ symbol below. After reviewing the Site, discuss any sales promotion example(s) you observed on the site.

Discussion Question

@

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Selecting Promotion-Mix Elements

Push and PullChannel Policies

Cost andAvailability ofPromotional

Methods

Characteristicsof the Product

Characteristicsof the Target

Market

Resources,Objectives,

Policies

PromotionalMix

An effective promotion mix requires the right combination of components:

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Promotion Mix Elements• Resources, Objectives, and Policies – Basing mix

on budget, goals, etc.• Characteristics of the Target Market – Includes

size, geographic distribution, and demographic characteristics

• Characteristics of the Product – Includes price and personal nature of the product

• Cost and Availability of Methods – Some promotion types are more expensive than others

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Push and Pull Channel Policies• Push policy - Promoting a product only to the next

institution down the marketing channel

• Pull policy - Promoting a product directly to consumers

to develop strong consumer demand that pulls products through the marketing channel

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© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Word-of-Mouth Communications and Social Media

• Word-of-mouth communication - Personal informal exchanges of information that

customers share with one another about products, brands and companies

• Social media - Technology that links people to networks and allows

exchanges of personal information, professional information and common interests

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• Buzz marketing - An attempt to incite publicity and public

excitement surrounding a product through a creative event

• Viral marketing - A strategy to get consumers to share a marketer’s

message, often through e-mail or online video, in a way that spreads dramatically and quickly

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Product Placement• The strategic location of products or product promotions

within entertainment media, including television program content to reach the product’s target market

Source: The Nielsen Company, March 5, 2009, http://adage.com/madisonandvine/article?article_jd=135045,accessed April 10, 2009

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Top 10 Shows with Product Placement

Source: The Nielsen Company, March 5, 2009, http://adage.com/madisonandvine/article?article_jd=135045,accessed April 10, 2009

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• Give an example of product placement that you have seen recently.

Discussion Question

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Criticisms and Defenses of

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After Reviewing This Chapter You Should:

• Understand the nature of integrated marketing communications.

• Know the process of communication.• Understand the role of promotion in the

marketing mix.• Know the objectives of promotion.• Understand the major elements of the

promotion mix.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

After Reviewing This Chapter You Should:

• Be able to describe the factors that affect the choice of promotion-mix elements.

• Know about word-of-mouth communication and how it affects promotion.

• Understand the criticisms and defenses of promotion.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Key Concepts• Integrated marketing

communications• Branded entertainment• Communication• Source• Receiver• Coding process• Communications channel• Decoding process• Noise• Feedback• Channel capacity• Promotion• Primary demand

• Pioneer promotion• Selective demand• Promotion mix• Kinesic communication• Proxemic communication• Tactile communication• Push policy• Pull policy• Word-of-mouth communication• Social media• Buzz marketing• Viral marketing• Product placement